Bond price load-down - UOB

Analysts at UOB Group noted that the US bond market saw Treasury prices strengthening on Monday (9 Jan) in tandem with its sovereign peers in Europe on the back of safe haven demand.

Key Quotes:

"One of the reasons attributed was the weekend comments from UK PM May reignited concerns about a looming hard Brexit in 2017. Another was that the sharp drop in oil prices also relieved some concerns about US inflation, adding to Treasury demand."

"The 2-year yield settled 2.8bps lower at 1.18%, while the 5-year yield was lower by 5.1bps to 1.87%."

"The 10- year yield ended the session lower by 5.5bps at 2.36%, near a one month low, while the 30-year bond yield closed down by 5.1bps to 2.96%."

"The US Treasury will conduct 4-week T-bills auctions & US$24bn 3-year note on Tuesday (10 Jan)."